Fewer prospective borrowers locked in rates on mortgages this past week, with locks for loans insured by the Federal Housing Administration slower than any week since early January. But cashout refinance share was widest in at least five years.
At 145, the U.S. Mortgage Market Index from Mortgage Daily, for the seven days ended Nov. 3 declined 5 percent from the prior report. No seasonal adjustments were made.
Compared to the same seven-day period last year, the index, which serves as a gauge for upcoming single-family loan originations, has diminished by one-tenth.
The biggest decline from the week ended Oct. 27 was with rates locks for adjustable-rate mortgages, which tumbled 37 percent on a week-over-week basis but were 30 percent stronger than the same week in 2016. ARM share thinned to 10.0 percent from 15.0 percent but was still far wider than 6.9 percent this week in 2016.
Government rate locks tumbled 19 percent and were down 12 percent from the week ended Nov. 4, 2016. The FHA MMI plunged
36 percent from last week to 27.4 — the lowest it has been since the week ended Jan. 6, 2017, when it came in at 27.2. Government share was 34.1 percent in the latest report, thinner than 39.9 percent a week earlier and 35.0 percent a year earlier. This week’s share consisted of a 18.9 percent FHA share and a 15.2 percent VA share.
The Purchase MMI fell 10 percent from the preceding report to 82 and was down 9 percent from one year ago.
Rate locks for jumbo mortgages were down 7 percent and have retreated 27 percent on a year-over-year basis. Jumbo share thinned to 7.6 percent from 7.7 percent and was much more narrow than 9.4 percent this week last year. Jumbo rates were 19 basis points higher than conforming rates, up from a 15-basis-point spread in the previous report and a 2-basis-point spread twelve months ago.
Rate locks for refinances rose 2 percent, though they stood 11 percent below 52 weeks ago. The cashout component of the Refinance MMI was 39 — the highest it has been since June 2013. Refinance share was 43.2 percent, widening from 40.2 percent but not as wide as 44.0 percent one year previous. Rate-term refinances accounted for 16.5 percent of the most-recent share, and cashout share was 26.7 percent — the widest cashout ever recorded based on data back to 2012.
The best performing index was the Conventional MMI, which rose 4 percent to 96 but was 9 percent shy of a year ago.
